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S.B. 198

             1     

TAX INCREMENT FINANCING FOR

             2     
MUNICIPAL INFRASTRUCTURE

             3     
1999 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: L. Alma Mansell

             6      AN ACT RELATING TO SPECIAL DISTRICTS; EXPANDING THE PERMISSIBLE USES OF
             7      TAX INCREMENT FINANCING IN SOME CIRCUMSTANCES; AUTHORIZING A
             8      REDEVELOPMENT AGENCY TO COLLECT TAX INCREMENT FOR AN ADDITIONAL
             9      PERIOD AND FOR CERTAIN USES UNDER CERTAIN CIRCUMSTANCES; MAKING
             10      TECHNICAL CHANGES; AND PROVIDING AN EFFECTIVE DATE.
             11      This act affects sections of Utah Code Annotated 1953 as follows:
             12      AMENDS:
             13          17A-2-1247, as last amended by Chapters 211 and 308, Laws of Utah 1998
             14          17A-2-1247.5, as last amended by Chapter 279, Laws of Utah 1998
             15          17A-2-1260, as last amended by Chapter 183, Laws of Utah 1996
             16      Be it enacted by the Legislature of the state of Utah:
             17          Section 1. Section 17A-2-1247 is amended to read:
             18           17A-2-1247. Tax increment financing authorized -- Division of tax revenues --
             19      Greater allocation allowed if authorized by taxing agency.
             20          (1) This section applies to projects for which a preliminary plan has been prepared prior
             21      to April 1, 1993, and for which all of the following have occurred prior to July 1, 1993: the agency
             22      blight study has been completed, and a hearing under Section 17A-2-1221 has in good faith been
             23      commenced by the agency.
             24          (2) Any redevelopment plan may contain a provision that taxes, if any, levied upon taxable
             25      property in a redevelopment project each year by or for the benefit of the state, any city, county,
             26      city and county, district, or other public corporation (hereinafter sometimes called "taxing
             27      agencies") after the effective date of the ordinance approving the redevelopment plan, shall be


             28      divided as follows:
             29          (a) That portion of the taxes which would be produced by the rate upon which the tax is
             30      levied each year by or for each of the taxing agencies upon the total sum of the taxable value of
             31      the taxable property in the redevelopment project as shown upon the assessment roll used in
             32      connection with the taxation of the property by the taxing agency, last equalized prior to the
             33      effective date of the ordinance, shall be allocated to and when collected shall be paid into the funds
             34      of the respective taxing agencies as taxes by or for the taxing agencies on all other property are
             35      paid (for the purpose of allocating taxes levied by or for any taxing agency or agencies which did
             36      not include the territory in a redevelopment project on the effective date of the ordinance but to
             37      which the territory has been annexed or otherwise included after the effective date, the assessment
             38      roll of the county last equalized on the effective date of the ordinance shall be used in determining
             39      the taxable value of the taxable property in the project on the effective date).
             40          (b) In a redevelopment project with a redevelopment plan adopted before April 1, 1983,
             41      that portion of the levied taxes each year in excess of the amount allocated to and when collected
             42      paid into the funds of the respective taxing agencies under Subsection (2)(a) shall be allocated to
             43      and when collected shall be paid into a special fund of the redevelopment agency to pay the
             44      principal of and interest on loans, moneys advanced to, or indebtedness (whether funded, refunded,
             45      assumed, or otherwise) incurred by the redevelopment agency before April 1, 1983, to finance or
             46      refinance, in whole or in part, the redevelopment project. Payment of tax revenues to the
             47      redevelopment agency shall be subject to and shall except uncollected or delinquent taxes in the
             48      same manner as payments of taxes to other taxing agencies are subject to collection. Unless and
             49      until the total taxable value of the taxable property in a redevelopment project exceeds the total
             50      taxable value of the taxable property in the project as shown by the last equalized assessment roll
             51      referred to in Subsection (2)(a), all of the taxes levied and collected upon the taxable property in
             52      the redevelopment project shall be paid into the funds of the respective taxing agencies. When
             53      the loans, advances, and indebtedness, if any, and any interest have been paid, all moneys received
             54      from taxes upon the taxable property in the redevelopment project shall be paid into the funds of
             55      the respective taxing agencies as taxes on all other property are paid.
             56          (c) Notwithstanding the provisions of Subsections (2)(a) and (e), Subsection
             57      17A-2-1210 (5), or any other provision of this part, any loans, moneys advanced to, or indebtedness
             58      (whether funded, refunded, assumed, or otherwise) issued prior to April 1, 1983, may be


             59      refinanced and repaid from 100% of that portion of the levied taxes paid into the special fund of
             60      the redevelopment agency each year in excess of the amount allocated to and when collected paid
             61      into the funds of the respective taxing agencies under Subsection (2)(a) if the principal amount of
             62      loans, moneys advanced to, or indebtedness is not increased in the refinancing.
             63          (d) In a redevelopment project with a redevelopment plan adopted before April 1, 1983,
             64      that portion of the levied taxes each year in excess of the amount allocated to and when collected
             65      paid into the funds of the respective taxing agencies under Subsection (2)(a) shall be allocated to
             66      and when collected shall be paid into a special fund of the redevelopment agency according to the
             67      limits established in Subsection (2)(f) to pay the principal of and interest on loans, moneys
             68      advanced to, or indebtedness (whether funded, refunded, assumed, or otherwise) incurred by the
             69      redevelopment agency after April 1, 1983, to finance or refinance, in whole or in part, the
             70      redevelopment project. Payment of tax revenues to the redevelopment agency shall be subject to
             71      and shall except uncollected or delinquent taxes in the same manner as payments of taxes to other
             72      taxing agencies are subject to collection. Unless and until the total taxable value of the taxable
             73      property in a redevelopment project exceeds the total taxable value of the taxable property in the
             74      project as shown by the last equalized assessment roll referred to in Subsection (2)(a), all of the
             75      taxes levied and collected upon the taxable property in the redevelopment project shall be paid into
             76      the funds of the respective taxing agencies. When the loans, advances, and indebtedness, if any,
             77      and any interest have been paid, all moneys received from taxes upon the taxable property in the
             78      redevelopment project shall be paid into the funds of the respective taxing agencies as taxes on all
             79      other property are paid.
             80          (e) In a redevelopment project with a redevelopment plan adopted after April 1, 1983, that
             81      portion of the levied taxes each year in excess of the amount allocated to and when collected paid
             82      into the funds of the respective taxing agencies under Subsection (2)(a) shall be allocated to and
             83      when collected shall be paid into a special fund of the redevelopment agency according to the
             84      limits established in Subsection (2)(f) to pay the principal of and interest on loans, moneys
             85      advanced to, or indebtedness (whether funded, refunded, assumed, or otherwise) incurred by the
             86      redevelopment agency after April 1, 1983, to finance or refinance, in whole or in part, the
             87      redevelopment project. Payment of tax revenues to the redevelopment agency shall be subject to
             88      and shall except uncollected or delinquent taxes in the same manner as payments of taxes to other
             89      taxing agencies are subject to collection. Unless and until the total taxable value of the taxable


             90      property in a redevelopment project exceeds the total taxable value of the taxable property in the
             91      project as shown by the last equalized assessment roll referred to in Subsection (2)(a), all of the
             92      taxes levied and collected upon the taxable property in the redevelopment project shall be paid into
             93      the funds of the respective taxing agencies. When the loans, advances, and indebtedness, if any,
             94      and any interest have been paid, all moneys received from taxes upon the taxable property in the
             95      redevelopment project shall be paid into the funds of the respective taxing agencies as taxes on all
             96      other property are paid.
             97          (f) For purposes of Subsections (2)(d) and (e), the maximum amounts which shall be
             98      allocated to and when collected shall be paid into the special fund of a redevelopment agency may
             99      not exceed the following percentages:
             100          (i) for a period of the first five tax years commencing from the first tax year a
             101      redevelopment agency accepts an amount allocated to and when collected paid into a special fund
             102      of the redevelopment agency to pay the principal of and interest on loans, moneys advanced to, or
             103      indebtedness (whether funded, refunded, assumed, or otherwise) which loans, advances, or
             104      indebtedness are incurred by the redevelopment agency after April 1, 1983, 100% of that portion
             105      of the levied taxes each year in excess of the amount allocated to and when collected paid into the
             106      funds of the respective taxing agencies under Subsection (2)(a);
             107          (ii) for a period of the next five tax years 80% of that portion of the levied taxes each year
             108      in excess of the amount allocated to and when collected paid into the funds of the respective taxing
             109      agencies under Subsection (2)(a);
             110          (iii) for a period of the next five tax years 75% of that portion of the levied taxes each year
             111      in excess of the amount allocated to and when collected paid into the funds of the respective taxing
             112      agencies under Subsection (2)(a);
             113          (iv) for a period of the next five tax years 70% of that portion of the levied taxes each year
             114      in excess of the amount allocated to and when collected paid into the funds of the respective taxing
             115      agencies under Subsection (2)(a); and
             116          (v) for a period of the next five tax years 60% of that portion of the levied taxes each year
             117      in excess of the amount allocated to and when collected paid into the funds of the respective taxing
             118      agencies under Subsection (2)(a).
             119          (g) (i) In addition to the maximum amounts allocated to and when collected paid into the
             120      special fund of a redevelopment agency under Subsection (2)(f), a redevelopment agency may


             121      receive an additional percentage greater than those described in Subsection (2)(f) if the amount of
             122      the tax increment funding received from the greater percentage is used:
             123          (A) for an agency established by the governing body of a first class city:
             124          (I) solely to pay all or part of the value of the land for and the cost of the installation and
             125      construction of any building, facility, structure, or other improvement of a publicly or
             126      privately-owned convention center or sports complex, including parking and infrastructure
             127      improvements related to such convention center or sports complex; [or]
             128          (II) solely to pay all or part of the cost of the installation and construction of an underpass
             129      that has not received funding from the Centennial Highway [Trust] Fund under Section [ 63-49-22 ]
             130      72-2-118 as part of the construction of Interstate 15; or
             131          (III) solely to pay all or part of the cost of the land for and the installation and construction
             132      of a recreational facility as defined in Section 59-12-702 , including parking and infrastructure
             133      improvements related to the recreational facility; or
             134          (B) for any agency, to pay all or part of the cost of the installation, construction, or
             135      reconstruction of the 10000 South underpass or the 11400 South or 12300 South interchange on
             136      I-15 in Salt Lake County.
             137          (ii) The additional percentage a redevelopment agency may receive under Subsection
             138      (2)(g)(i) shall be:
             139          (A) 100% of that portion of the levied taxes each year in excess of the amount allocated
             140      to and when collected paid into the funds of the respective taxing agencies under Subsection (2)(a);
             141      and
             142          (B) paid for a period of the first 32 years commencing from the first tax year a
             143      redevelopment agency accepts an amount allocated to and when collected paid into a special fund
             144      of the redevelopment agency to pay the principal of and interest on loans, moneys advanced to, or
             145      indebtedness, whether funded, refunded, assumed, or otherwise, that are incurred by the
             146      redevelopment agency after April 1, 1983.
             147          (iii) This Subsection (2)(g) applies only to a redevelopment agency created by a city in
             148      [whose project area] which:
             149          (A) construction has begun on a building, facility, structure, or other improvement of a
             150      publicly or privately-owned convention center or sports complex, including parking and
             151      infrastructure improvements related to such convention center or sports complex, on or before June


             152      30, 1997;
             153          (B) construction has begun on or before June 30, [1998] 2000, on an underpass that has
             154      not received funding from the Centennial Highway [Trust] Fund under Section [ 63-49-22 ]
             155      72-2-118 as part of the construction of Interstate 15; or
             156          (C) the installation, construction, or reconstruction of the 10000 South underpass or the
             157      11400 South or 12300 South interchange on I-15 in Salt Lake County has begun on or before June
             158      30, [1998] 2000.
             159          (iv) An additional amount described in Subsection (2)(g)(i) may no longer be allocated to
             160      or used by the redevelopment agency, notwithstanding any other law to the contrary, if the
             161      additional amount is not pledged:
             162          (A) to pay all or part of the value of the land for and the cost of the installation and
             163      construction of any building, facility, structure, or other improvement described in Subsection
             164      (2)(g)(i)(A)(I) on or before June 30, 1997;
             165          (B) on or before June 30, [1998] 2000, to pay all or part of the cost of the installation and
             166      construction of an underpass that has not received funding from the Centennial Highway [Trust]
             167      Fund under Section [ 63-49-22 ] 72-2-118 as part of the construction of Interstate 15; or
             168          (C) on or before June 30, [1998] 2000, to pay all or part of the cost of the installation,
             169      construction, or reconstruction of the 10000 South underpass or the 11400 South or 12300 South
             170      interchange on I-15 in Salt Lake County.
             171          (3) Nothing contained in Subsections (2)(d), (e), (f), and (g) prevents an agency from
             172      receiving a greater percentage than those established in Subsections (2)(f) and (g) of the levied
             173      taxes of any local taxing agency each year in excess of the amount allocated to and when collected
             174      paid into the funds of the respective local taxing agency if the governing body of the local taxing
             175      agency consents in writing.
             176          (4) Nothing in this section may be construed to prevent an agency from using funds
             177      allocated under Subsection (2)(f) for a project allowed under Subsection (2)(g)(i).
             178          Section 2. Section 17A-2-1247.5 is amended to read:
             179           17A-2-1247.5. Tax increment financing -- Project area budget approval.
             180          (1) This section applies to projects for which a preliminary plan has been adopted on or
             181      after July 1, 1993.
             182          (2) (a) A taxing agency committee shall be created for each redevelopment or economic


             183      development project. The committee membership shall be selected as follows:
             184          (i) two representatives appointed by the school district in the project area;
             185          (ii) two representatives appointed by resolution of the county commission or county
             186      council for the county in which the project area is located;
             187          (iii) two representatives appointed by resolution of the city or town's legislative body in
             188      which the project area is located if the project is located within a city or town;
             189          (iv) a representative approved by the State School Board; and
             190          (v) one representative who shall represent all of the remaining governing bodies of the
             191      other local taxing agencies that levy taxes upon the property within the proposed project area. The
             192      representative shall be selected by resolution of each of the governing bodies of those taxing
             193      agencies within 30 days after the notice provided in Subsection 17A-2-1256 (3).
             194          (b) If the project is located within a city or town, a quorum of a taxing agency committee
             195      consists of five members. If the project is not located within a city or town, a quorum consists of
             196      four members.
             197          (c) A taxing agency committee formed in accordance with this section has the authority
             198      to:
             199          (i) represent all taxing entities in a project area and cast votes that will be binding on the
             200      governing boards of all taxing entities in a project area;
             201          (ii) negotiate with the agency concerning the redevelopment plan;
             202          (iii) approve or disapprove project area budgets under Subsection (3); and
             203          (iv) approve an exception to the limits on the value and size of project areas imposed by
             204      Section 17A-2-1210 , or the time and amount of tax increment financing under this section.
             205          (3) (a)(i) If the project area budget does not allocate 20% of the tax increment for housing
             206      as provided in Subsection 17A-2-1264 (2)(a):
             207          (A) an agency may not collect any tax increment for a project area until after the agency
             208      obtains the majority consent of a quorum of the taxing agency committee for the project area
             209      budget; and
             210          (B) a project area budget adopted under Subsection (3)(a)(i)(A) may be amended if the
             211      agency obtains the majority consent of a quorum of the taxing agency committee.
             212          (ii) If the project area budget allocates 20% of the tax increment for housing as provided
             213      in Subsection 17A-2-1264 (2)(a):


             214          (A) an agency may not collect tax increment from all or part of a project area until after:
             215          (I) the Olene Walker Housing Trust Fund Board, established under Title 9, Chapter 4, Part
             216      7, Olene Walker Housing Trust Fund, has certified the project area budget as complying with the
             217      requirements of Section 17A-2-1264 ; and
             218          (II) the agency's governing body has approved and adopted the project area budget by a
             219      2/3 vote; and
             220          (B) a project area budget adopted under Subsection (3)(a)(ii)(A) may be amended if:
             221          (I) the Olene Walker Housing Trust Fund Board, established under Title 9, Chapter 4, Part
             222      7, Olene Walker Housing Trust Fund, certifies the amendment as complying with the requirements
             223      of Section 17A-2-1264 ; and
             224          (II) the agency's governing body approves and adopts the amendment by a 2/3 vote.
             225          (b)Within 30 days after the approval and adoption of a project area budget, each agency
             226      shall file a copy of the budget with the county auditor, the State Tax Commission, the state auditor,
             227      and each property taxing entity affected by the agency's collection of tax increment under the
             228      project area budget.
             229          (c) (i) Beginning on January 1, 1997, before an amendment to a project area budget is
             230      approved, the agency shall advertise and hold one public hearing on the proposed change in the
             231      project area budget.
             232          (ii) The public hearing under Subsection (3)(c)(i) shall be conducted according to the
             233      procedures and requirements of Subsection 17A-2-1222 (2), except that if the amended budget
             234      allocates a greater proportion of tax increment to a project area than was allocated to the project
             235      area under the previous budget, the advertisement shall state the percentage allocated under the
             236      previous budget and the percentage allocated under the amended budget.
             237          (d) If an amendment is not approved, the agency shall continue to operate under the
             238      previously approved, unamended project area budget.
             239          (4) (a) An agency may collect tax increment from all or a part of a project area. The tax
             240      increment shall be paid to the agency in the same manner and at the same time as payments of
             241      taxes to other taxing agencies to pay the principal of and interest on loans, moneys advanced to,
             242      or indebtedness, whether funded, refunded, assumed, or otherwise, to finance or refinance, in
             243      whole or in part, the redevelopment or economic development project and the housing projects and
             244      programs under Sections 17A-2-1263 and 17A-2-1264 .


             245          (b) (i) An agency may elect to be paid:
             246          (A) if 20% of the project area budget is not allocated for housing as provided in Subsection
             247      17A-2-1264 (2)(a):
             248          (I) 100% of annual tax increment for 12 years; or
             249          (II) 75% of annual tax increment for 20 years; or
             250          (B) if 20% of the project area budget is allocated for housing as provided in Subsection
             251      17A-2-1264 (2)(a):
             252          (I) 100% of annual tax increment for 15 years; or
             253          (II) 75% of annual tax increment for 24 years.
             254          (ii) Tax increment paid to an agency under this Subsection (4)(b) shall be paid for the
             255      applicable length of time beginning the first tax year the agency accepts tax increment from a
             256      project area.
             257          (c) An agency may receive a greater percentage of tax increment or receive tax increment
             258      for a longer period of time than that specified in Subsection (4)(b) if the agency obtains the
             259      majority consent of the taxing agency committee.
             260          (5) (a) The redevelopment plan shall provide that the portion of the taxes, if any, due to
             261      an increase in the tax rate by a taxing agency after the date the project area budget is approved by
             262      the taxing agency committee may not be allocated to and when collected paid into a special fund
             263      of the redevelopment agency according to the provisions of Subsection (4) unless the taxing
             264      agency committee approves the inclusion of the increase in the tax rate at the time the project area
             265      budget is approved. If approval of the inclusion of the increase in the tax rate is not obtained, the
             266      portion of the taxes attributable to the increase in the rate shall be distributed by the county to the
             267      taxing agency imposing the tax rate increase in the same manner as other property taxes.
             268          (b) The amount of the tax rate to be used in determining tax increment shall be increased
             269      or decreased by the amount of an increase or decrease as a result of:
             270          (i) a statute enacted by the Legislature, a judicial decision, or an order from the State Tax
             271      Commission to a county to adjust or factor its assessment rate under Subsection 59-2-704 (2);
             272          (ii) a change in exemption provided in Utah Constitution Article XIII, Section 2, or Section
             273      59-2-103 ;
             274          (iii) an increase or decrease in the percentage of fair market value, as defined under
             275      Section 59-2-102 ; or


             276          (iv) a decrease in the certified tax rate under Subsection 59-2-924 (2)(c) or (2)(d)(i).
             277          (c) (i) Notwithstanding the increase or decrease resulting from Subsection (5)(b), the
             278      amount of money allocated to, and when collected paid to the agency each year for payment of
             279      bonds or other indebtedness may not be less than would have been allocated to and when collected
             280      paid to the agency each year if there had been no increase or decrease under Subsection (5)(b).
             281          (ii) For a decrease resulting from Subsection (5)(b)(iv), the taxable value for the base year
             282      under Subsection 17-2-1247 (2)(a) or 17A-2-1202 (2), as the case may be, shall be reduced for any
             283      year to the extent necessary, including below zero, to provide an agency with approximately the
             284      same amount of money the agency would have received without a reduction in the county's
             285      certified tax rate if:
             286          (A) in that year there is a decrease in the certified tax rate under Subsection 59-2-924 (2)(c)
             287      or (2)(d)(i);
             288          (B) the amount of the decrease is more than 20% of the county's certified tax rate of the
             289      previous year; and
             290          (C) the decrease results in a reduction of the amount to be paid to the agency under Section
             291      17A-2-1247 or 17A-2-1247.5 .
             292          (6) (a) For redevelopment plans first adopted before May 4, 1993, beginning January 1,
             293      1994, all of the taxes levied and collected upon the taxable property in the redevelopment project
             294      under Section 59-2-906.1 which are not pledged to support bond indebtedness and other
             295      contractual obligations are exempt from the provisions of Subsection (4).
             296          (b) For redevelopment plans first adopted after May 3, 1993, beginning January 1, 1994,
             297      all of the taxes levied and collected upon the taxable property in the redevelopment project under
             298      Section 59-2-906.1 are exempt from the provisions of Subsection (4).
             299          (7) (a) In addition to the amounts and periods that an agency may elect to be paid tax
             300      increment under Subsection (4)(b), an agency may elect to be paid 100% of annual tax increment
             301      for an additional period, as provided in Subsection (7)(b), beyond those periods provided under
             302      Subsection (4)(b), without the approval of the taxing agency committee, if the tax increment
             303      funding for the additional period is used:
             304          (i) for an agency in a city in which is located all or a portion of an interchange on I-15 or
             305      that would directly benefit from an interchange on I-15, to pay some or all of the cost of the
             306      installation, construction, or reconstruction of:


             307          (A) an interchange on I-15; or
             308          (B) frontage and other roads connecting to the interchange, as determined by the
             309      Department of Transportation created under Section 72-1-201 and the Transportation Commission
             310      created under Section 72-1-301 ; or
             311          (ii) for an agency in a city of the first class, to pay some or all of the cost of the land for
             312      and installation and construction of a recreational facility, as defined in Subsection 59-12-702 (3),
             313      including parking and infrastructure improvements related to the recreational facility.
             314          (b) The additional period for which an agency may be paid 100% of annual tax increment
             315      under Subsection (7)(a) is an additional:
             316          (i) 13 years, for an agency that initially elected to be paid under Subsection (4)(b)(i)(A)(I);
             317          (ii) five years, for an agency that initially elected to be paid under Subsection
             318      (4)(b)(i)(A)(II);
             319          (iii) ten years, for an agency that initially elected to be paid under Subsection
             320      (4)(b)(i)(B)(I); and
             321          (iv) one year, for an agency that initially elected to be paid under Subsection
             322      (4)(b)(i)(B)(II).
             323          Section 3. Section 17A-2-1260 is amended to read:
             324           17A-2-1260. Payment authorized for land or cost of improvements within or without
             325      project area if of benefit to project area -- Reimbursement of costs -- Limitation on use of tax
             326      increment.
             327          (1) (a) An agency may, with the consent of the legislative body:
             328          (i) subject to Subsection (5), pay all or part of the value of the land for and the cost of the
             329      installation and construction of any building, facility, structure, landscaping, or other improvement
             330      which is publicly owned within the project area, upon a determination by resolution of the agency
             331      and local legislative body that such buildings, facilities, structures, landscaping, or other
             332      improvements are of benefit to the project area regardless of whether such improvement is within
             333      another project area, or in the case of a project area in which substantially all of the land is publicly
             334      owned that such improvement is of benefit to the community;
             335          (ii) in first-class cities, pay all or part of the value of the land for and the cost of the
             336      installation and construction of any building, facility, structure, or other improvement of a publicly
             337      or privately owned convention center or sports complex, including parking and infrastructure


             338      improvements related to the convention center or sports complex, either within or without the
             339      project area, upon a determination by resolution of the agency and local legislative body that these
             340      buildings, facilities, structures, or other improvements are of benefit to the project area regardless
             341      of whether the improvement is within another project area, or in the case of a project area in which
             342      substantially all of the land is publicly owned, that the improvement is of benefit to the
             343      community; and
             344          (iii) subject to Subsection (5) and approval by the taxing agency committee in accordance
             345      with Section 17A-2-1247.5 , pay all or part of the cost of the installation of utilities and access
             346      which are publicly owned within or without the project area, upon a determination by resolution
             347      of the agency and local legislative body that the utilities and access are of benefit to the project
             348      area.
             349          (b) This determination by the agency and the local legislative body shall be final and
             350      conclusive as to the issue of benefit to the project area.
             351          (2) When the value of such land or the cost of the installation and construction of such
             352      building, facility, structure, or other improvement, or both, has been, or will be, paid or provided
             353      for initially by the community or other public corporation, the agency may enter into a contract
             354      with the community or other public corporation under which it agrees to reimburse the community
             355      or other public corporation for all or part of the value of such land or all or part of the cost of such
             356      building, facility, structure, or other improvement, or both, by periodic payments over a period of
             357      years.
             358          (3) The obligation of the agency under such contract shall constitute an indebtedness of
             359      the agency for the purpose of carrying out the redevelopment project for such project area, which
             360      indebtedness may be made payable out of tax increment under Subsection 17A-2-1247 (2)(b) or
             361      out of any other available funds.
             362          (4) In a case where such land has been or will be acquired by, or the cost of the installation
             363      and construction of such building, facility, structure, or other improvement has been paid by, a
             364      parking authority, joint powers entity, or other public corporation to provide a building, facility,
             365      structure, or other improvement which has been or will be leased to the community, such contract
             366      may be made with, and such reimbursement may be made payable to the community.
             367          (5) Tax increment financing under Sections 17A-2-1247 and 17A-2-1247.5 may not be
             368      used to construct municipal buildings, courts or other judicial buildings, and fire stations S [ , but may ] s


             369      S [ be used to retire bonds or other indebtedness on existing publicly owned structures located within
             370      a project area if the agency by resolution determines that the structures are of benefit to the project
             371      area.
] s

             372          (6) This section does not apply to any land, building, facility, structure, or other
             373      improvement for which:
             374          (a) bonds or other indebtedness of the agency have been issued or contracted;
             375          (b) the purchase by the agency has been accomplished; or
             376          (c) construction has commenced before April 1, 1983.
             377          (7) (a) Tax increment under Sections 17A-2-1247 and 17A-2-1247.5 from one project area
             378      may, in first-class cities, be used in another project area to pay all or part of the value of the land
             379      for and the cost of installation and construction of any building, facility, structure, or other
             380      improvement of a publicly or privately owned convention center or sports complex, including
             381      parking and infrastructure improvements related to such convention center or sports complex.
             382          (b) This Subsection (7) applies only to a redevelopment agency in whose project area
             383      construction has begun on a building, facility, structure, or other improvement of a publicly or
             384      privately owned convention center or sports complex, including parking and infrastructure
             385      improvements related to such convention center or sports complex, on or before June 30, 1997.
             386          (c) If tax increment allocated for use in another project area as described in Subsection
             387      (7)(a) are not pledged to pay all or part of the value of the land for and the cost of the installation
             388      and construction of any building, facility, structure, or other improvement described in Subsection
             389      (7)(a) on or before June 30, 1997, the tax increment may no longer be allocated to or used by the
             390      redevelopment agency for use in another project area, notwithstanding any other law to the
             391      contrary.
             392          Section 4. Effective date.
             393          If approved by two-thirds of all the members elected to each house, this act takes effect
             394      upon approval by the governor, or the day following the constitutional time limit of Utah
             395      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
             396      date of veto override.





Legislative Review Note
    as of 2-12-99 2:39 PM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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